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A retail outlet has its own production facility for producing denim cloth. The ordering cost ($150) is the cost of setting up the production process to make the denim cloth. The carrying cost is $0.75 per yard and the demand is 10,000 yards per year. The production facility operates the same days as the retail store is open (i.e. 311 days) and produces 150 yards of the denim cloth per day. Determine:
a) The optimal order size
b) The total inventory cost
c) The length of time to receive an order
d) The number of orders per year
e) The maximum inventory level
Testing the Optimality: After obtaining the initial basic feasible solution the next step is test whether it optimal or not. There are two methods of testing the optimality of a
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